Dubai’s Al Ansari swallows Bahrain’s BFC for $200mn

DUBAI: DFM-listed Al Ansari Financial Services to acquire Bahrain’s BFC Group Holdings WLL for $200 million to become the largest remittance and exchange service provider in the Gulf Cooperation Council countries by branch network with more than 410 branches.

The UAE-based integrated financial services group said it would secure financing under customary market terms to finance the acquisition.

“The transaction closing remains subject to regulatory approvals and satisfaction of certain conditions precedent agreed between the parties,” the companies said in a statement. 

The transaction is anticipated to close by the first quartere of 2025, pending necessary legal and regulatory approvals.

“The acquisition represents a pivotal moment in our growth trajectory, establishing our Company as the leading foreign exchange and remittance service provider in the Gulf region,” Rashed Ali Al Ansari, Group CEO of Al Ansari Financial Services PJSC, said.

Expanding geographic presence

Al Ansari said it recognises BFC Group Holdings WLL as a unique player due to its sizeable presence and market share across key GCC and Asian markets including Bahrain, Kuwait, and India.

“The acquisition is aligned with Al Ansari’s strategic growth pillars of expanding its geographic presence, growing its physical branch network and enhancing its service portfolio,” it said.

The consolidated revenues of Al Ansari and BFC Group for full-year 2023 amounted to approximately $385 million (Dh1.4 billion), reflecting a 22 per cent rise compared to Al Ansari’s reported revenue.

The consolidated revenues of AAFS and BFCGH for the full year 2023 amounted to approximately $385 million, a 22 per cent increase on AAFS’s reported revenue.

BFCGH, established in 1917, was the first foreign exchange company and financial services institution in Bahrain and the GCC, the disclosure said.

 “By broadening our customer base and extending our services across the GCC and India, we aim to provide a wider audience with access to our comprehensive remittance and foreign exchange solutions,” Al Ansari said.

 “This strategic move highlights the value and potential of our organisation and opens new opportunities for growth and innovation,” Ebrahim Nonoo, Managing Director and CEO of BFCGH, said.